Vali-3 looks set to stand with Metgasco’s other gas successes

Drilling has wrapped up at Metgasco’s Vali-3 well in the Cooper Basin, Queensland with gas shows observed in the primary target Patchawarra Formation.

In addition to the previously reported gas shows in the shallower Nappamerri and Toolachee formations, shows were also observed in the Patchawarra and Epsilon Formations and the Tirrawarra Sandstone.

Metgasco (ASX:MEL) noted that over the coming days, operator Vintage Energy (ASX:VEN) will complete wireline logs to evaluate the hydrocarbon shows observed while drilling.

Vali-3 also encountered oil shows in the shallower Jurassic section and Toolachee Formation.

The oil shows are indicative of possible oil migration to shallower Jurassic prospects and leads in the area.

Megasco has a 25% interest in Vali-3 in ATP 2021.

Cooper Basin gas hub

The success of Vali-3 wraps up the joint venture’s drilling program in the Cooper Basin, setting the stage for the development of a gas development hub.

Approval from the Australian Competition & Consumer Commission has already been received for joint marketing of gas from the Vali field and the partners are expected to make a development decision in the third quarter of this year.

The PRL211 JV is considering the option to connect the anticipated future gas production from the Odin-1 – located just across the border in South Australia – into the ATP2021 production hub.

This article was developed in collaboration with Metgasco, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.